Amazon has broken its previous profit record after raking in a towering $2 billion, driven by U.S. tax law changes and strong growth from new customers using Prime.
Pushing its multi-pronged approach, Amazon has also benefitted from a positive reaction to Alexa as well as success in grocery sales following its 2017 acquisition of Whole Foods Market.
The stock market has reflected this strong position, with Amazon shares climbing more than six per cent in extended trading. Amazon has also received a boost from the strong tail wind provided by the U.S. Republican tax bill that became active at the end of 2017, adding $789 million to the company’s profits.
Ending in December 2017, Amazon recorded a doubled net income that had reached $1.86 billion, with share prices translating to $3.75 per shares. Thomson Reuters analysts had predicted Amazon shares at this point to be worth just $1.85 per share at this point.
Exclusive television titles are proving to be a major attractor for customers as part of the Prime service, coupled with the fast-shipping option that Prime membership is known for.
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Recently Amazon and Microsoft missed a proposed due date upon which the two companies had planned to bring Alexa and Cortana together, a collaboration had been planned to be carried out before the end of 2017.
It is intended that users would be able to benefit from enhanced options for playing music, controlling smart home devices and setting up calendar appointments. The move was set to take the step further to make all Echo or Microsoft devices compatible with Alexa or Cortana.
There have been other big plans made for Alexa as Ford plans to integrate the voice-controlled system into its vehicles, potentially a major new area of use for the Alexa system. This plan also taps into the top trend that is the increasingly smart, connected world of automotive design.
Amazon’s cloud business yet again saw a bumper quarter, generating more revenue than analysts expected. Sales grew by 45%, with $5.11bn in revenue reported in the quarter and $17.46 billion in 2017.
